Childress J.

TO: Proximity Music Teams
From: Jazmin Childress
DATE: April 15, 2010
Subject: Report Proposal on how to minimize illegal downloads

The music industry loses billions of dollars in economic losses each year due to global music piracy. There are hundreds of online websites that promote free illegal music; which reduces the amount of people in Gen-y who actually purchase music. This leads to a large population of illegal downloaders because the chance of punishing them all is slim to none. So currently there are no real repercussions that will make members of Gen-Y think twice about illegally downloading music. A new business plan needs to be created in order to build a strategy to transition Gen-Y back into purchasing music while punishing those who don't. I propose to write a report on possible attempts to stop, or at least minimize, illegal downloads.

Need

Illegal downloading is easy, convenient and free; making the much needed transition from illegal downloads to actually purchasing music much harder. In order to strategize ways to persuade Gen-Y to buy music, we must look at what attempts have been made and/ or in the process of being made. Also, we have to look worldwide and see how other countries are responding to internet piracy. It is important to observe the following sequence of events that have been made in order to fight the battle against illegal downloading:
  • France, Britain and Korea both have created proposals in order to stop internet piracy. France's proposal is called "Création et Internet". Once approved, the proposal gives users two warnings to stop illegally downloading. On the third offense, the user's internet provider will block those affected access to the internet.
  • The Recording Industry Association of America (RIAA) has increased the amount of copy infringement notices given to universities around the United States. These notices state that a student on that particular college campus has been "illegally distributing copyrighted songs, and requests that the university "removes or disables access to the infringing sound recording". "
  • Warner Brothers Entertainment UK, has started a new approach, and is currently recruiting for an "Anti-Piracy intern" who will look through the internet in order to catch music pirates.

Internet Piracy will never come to a complete stop. The only option available for the music industry is to find feasible alternatives to decrease the amount of illegal downloads. In the mean time, until the entertainment world finds an effective way to stop piracy, they should take advantage of it while they can. For now, the music industry should cut their losses in illegal downloads by investing in product placement, social media websites, concerts, and other promotional venues for their artist.

Topics

The proposed report: "When Given Lemons, Make Lemonade: The Positive Side of Piracy" will deal with the following topics:
  • The effect music piracy has on the music industry.
  • Different business models companies are using to reduce the amount of illegal downloading
  • Piracy as a way of marketing
  • Product Placement in music industry
.

Sources

Agrawal, Mohit. "Business Models to Fight Music Piracy." Telecom Circle. 21 Feb. 2010. Web. 21 Apr. 2010. <http://www.telecomcircle.com/2010/02/digital-music/>
Agrawal discusses different business models that companies are now using to help stop music piracy. He talks about download subscriptions and streaming services. He also talks about innovatives ways the music industry can stop piracy; which include providing convenience and realistic pricing.

Torgerson, Katlyn. "RIAA Boosts Effort to Stop Illegal Downloads." The Johns Hopkins News-Letter. 08 Mar. 2007. Web. 21 Apr. 2010. <http://media.www.jhunewsletter.com/media/storage/paper932/news/2007/03/08/News/Riaa-Boosts.Effort.To.Stop.Illegal.Downloads-2769501.shtml>.
Togerson reports about how the RIAA has increased the amount of copyright infringement notices they have sent to colleges and universities in the United States. John Hopkins has recieved 35 notices in the 2007 academic year.

Pfanner, Eric. "British Put Teeth in Anti-Piracy Proposal." The New York Times. 14 Mar. 2010. Web. 21 Apr. 2010. <http://www.nytimes.com/2010/03/15/technology/15iht-piracy15.html?pagewanted=1>.
PFanner reports about how the UK and South Korea are trying to pass proposals to stop internet piracy. These proposals will give users two warnings to stop illegally downloading. On the third offense, the user's internet provider will block them acess to the internet.

Callihan, Kristen By. "Warner Brothers UK Offers $26K/Year for Anti-Piracy Intern." Paste Magazine. 31 Mar. 2010. Web. 21 Apr. 2010. <http://www.pastemagazine.com/articles/2010/03/warner-bros-uk-looking-for-piracy-intern.html>.
Callihan examines how Warner Brothers Entertainment UK is trying a new approach to stop music piracy. They are currently trying to find an "anti-piracy intern" whose job will entail trolling the internet to catch music pirates in the act.

Cliffe, Loz. "Loz Cliffe - Music Piracy As A Marketing Strategy." Loz Cliffe. 26 Sept. 2009. Web. 21 Apr. 2010. <http://www.lozcliffe.com/article.php?id=16>.
This author examines how the music piracy can be used as an marketing strategy. They also talk about how social networking websites such as Myspace can be very helpful in gaining exposure for unknown bands.

Newman, Jason. "Inside the M.I.A. Versus Gaga Battle: Why Artists Need Product Placement for Revenue." PopEater. 12 Apr. 2010. Web. 21 Apr. 2010. <http://www.popeater.com/2010/04/12/mia-lady-gaga-product-placement/>.
Newman discusses how product placement can benefit artist by enhancing their revenues. He uses Lady Gaga's telephone video as an example and talks about how the M.I.A disagrees with Lady GaGa's overly product placed music video.